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Chapter 9
Conducting Performance Management Chapter 9 – Conducting Performance Management Kristi___________________________ Strategic Importance of Performance Management: ' '''Performance Management: ' ''Organizations with effective performance management: '' · Define clear performance goals and measures · Conduct performance appraisals · Provide ongoing performance feedback Performance Management serves following purposes: enhance employee motivation and productivity, support achievement of organizations strategic goals, and facilitate strategic planning and change. '''Enhance Employee Motivation and Productivity Motivation (1) Decision about which behaviors to engage in (2) Decision about how much effort to expend § Note: Effective job performance requires that employees engage in the appropriate behaviors and exert relatively high levels of effort. (p. 315) Expectancy Theory Examples of behavioral choices: § Whether to go to work or call in sick § Whether to leave work at the official quitting time or stay late § Whether to exert a great deal of effort or work at a relaxed pace An employee’s motivation to perform well is determined by how he or she responds to three key questions (1) The expectancy questions (2) The instrumentality question (3) The valence questions Expectancy Question employees to be motivated to expend effort, they must expect that their efforts will translate into performance. There can be overlap between actual performance and measured performance. Biases and inaccuracies on the part of the people who asses an employee’s performance can mean that the performance measures reflect irrelevant information, such as whether the boss likes the employee. Instrumentality Question perform?” (p. 316) The issue is whether performance is of any instrumental usefulness. Example given is incentives based upon performance. For example, if goal of 100 entries of data entry are entered with 95% accuracy by Thursday, then employee earns the rest of the week off. (p. 316-317) Valence Question behavior?” Even when employees believe that good performers experience different consequences than poor performer, they may not be motivated to put in the required effort if the consequences are not valued. Valences are personal, same valence may be important for one person and not for another. (p. 317) Satisfaction received for performance are fair. Satisfied employees are more likely to continue to feel motivated. Dissatisfied employees exert less effort, which results in declining performance and a general downward spiral to ineffectiveness. (p. 317) Supporting Strategic Goals: ''' (1) Employees better understand their organizations strategic focus and how their jobs fit with it. (2) The goals direct employee behaviors toward activities that are consistent and supportive of the organization’s strategy. (p. 317) '''Strategic Planning, Alignment and Change Detecting Problems Evaluating Change Performance Management w/in an Integrated HRM System: ''' Performance-driven Culture: A culture that depends on effective performance management. (p. 319) Share a common focus on monitoring and improving performance. Example: dismissing lowest performing employees (bottom 10%) and Dell (Be direct, celebrate briefly, difficult goals, pull the plug, teamwork, no excuses). (p. 320) Legal Environment: An important external environmental factor that affects PM. Society has a vested interest in ensuring that employers use high-quality information for these important decisions and their interest are reflected in various laws and regulations. Measured used to assess employees should be nondiscriminatory, job related and fairly used. (p. 321) '''Valid Performance Measure nothing else. Deficient Performance Measure: If the PM does not assess all of the behaviors and results that are important and relevant to the job, it is a deficient performance measure. Contaminated Performance Measure: The PM asses anything that is unimportant or irrelevant to the job. HR Triad Managers: Expected to review performance results with employees and explain any consequences (pay raises, disciplinary action, etc.). PM is a means for moving into a more productive future, employees must act on results, manager’s responsibility is to ensure that employees accept the feedback they receive and use it as a basis for improving on in the future. (p. 324) Employees: Seeking honest feedback and using it to improve their performance. Often asked to participate by first providing their own assessment of their performance and often share responsibility for evaluating the performance or others and providing feedback. HR Professionals: Ensuring that the organization’s PM practices are aligned with the internal organizational contexts, reflect state-of-the-art knowledge, and meet legal standards. They also help ensure that well-designed practices are implemented appropriately and support managers by holding them accountable for their appraisals, while supporting employees. (p. 324-325). Support for Managers Accountability of Managers Support for Employees What to Measure ''' '''Performance Criteria team, or a work unit is evaluated. (p. 326) Personal Traits: Focus on personal characteristics, such as loyalty, dependability, communication ability, and leadership. Behaviors: Behavioral Criteria: Focus on how work is performed. Can includes task-related or more general counterproductive behaviors such as absenteeism, tardiness and carelessness. (p. 326) Customer Service: Ex. Au Bon Pain, created list of behaviors that convey friendliness to customers. Managing Multiculturalism: Behavioral criteria are proving useful for monitoring whether managers are investing sufficient energy in the development of employees from diverse backgrounds. When combined with performance feedback, behavioral measures are particularly useful for employee development. Objective Results: Results Criteria: was accomplished or produced. (p. 327) Multiple Criteria: Using multiple criteria, for example, behavioral, results and trait-based. (p. 328) Weighting the Criteria weight for the criteria. One way is to equally weight all or you can assign various weights to each criterion. Use job analysis info when assigning weights. (p. 329) Timing: ''' '''Focal-Point Approach Anniversary Approach Natural Time Span of the Job Participants: ' Supervisors: Provide more reliable and useful performance judgments that others, perhaps because they have knowledge of several aspects of employees performance. (p. 332) Self-Appraisal: When employees asses their own performance. (p. 332) ''Accuracy Cultural Differences Peers: Research shows that peer appraisals are useful predictors of training success and future performance (p. 333). Subordinates: Many have access to supervisor-subordinate interactions. (p. 333) '''Upward Appraisal Anonymity Usefulness Customers 360°''' Appraisals''' Performance Appraisal Formats Performance Appraisal: Involves evaluating performance based on the judgments and opinions of subordinates, peers, supervisors, their manager and even the employees themselves (p. 335) Norm-Reference Formats: The rater is forced to evaluate the individual or team and make comparisons to others (p. 335) Straight Ranking Forced Distribution Absolute Standard Formats Graphic Rating Scales Behaviorally Anchored Rating Scales (BARS) Behavioral Observation Scales (BOS Results-Based Formats Direct Index Approach Balanced Scorecard Approach Management by Objectives (MBO) The Rating Process: ''' Rating Errors: Rating errors can affect all stages of the process – but their effects are most clearly seen at the final state, after ratings have actually been recorded (p. 341). '''Common Performance Rating Errors § Halo and horns: Thinking of an employee as more or less good or bad. § Leniency: rating higher than they should be rated. § Strictness: All employees are rated lower than they should be. § Central Tendency: All rated average when there should vary. § Primacy: Using initial info to categorize employee as good or bad. § Recency: Rater may ignore employee performance until the appraisal date draws near. § Contract Effects: When compared with weak employees, an average employee will appear outstanding. Improving Rater Accuracy: Several strategies can be used to reduce appraisal errors and improve rater accuracy. They include: Rating Scale Format performance criteria and the rating scales are precise. Reevaluate your scale to ensure accurate ratings (p. 342). Provide Memory Aids performance (p. 342). Provide Rater Training behaviors to observe and was to reduce rating errors (p. 342). Reward Accurate and Timely Appraisals be rewarded. Can make this a part of the rating manager’s job description (p. 342). Use Multiple Raters may be especially effective in producing accurate ratings, because discussion among members of the group helps overcome the various errors and biases of individuals (p. 342-343). Providing Feedback: ' Differing Perspectives: Ideally, a conversation about how to improve in the future follows from a discussion of how well thing have gone in the past. This discussion becomes difficult when employees and their managers have different perspectives about the causes of past-performance (p. 343). Timing: Needs to be well-timed and immediate feedback is best. Should involve only as much info as the receiver can use (p. 344). Preparation: Schedule and be prepared prior to review session (p. 344). Content of Discussion: Most useful feedback sessions focus on solving problems and planning for the future. ''Diagnosis Removing Roadblocks Follow-up Positive Reinforcement: Involves the use of positive rewards to increase the occurrence of the desired performance (p. 346). Punishment: Decreases the frequency of undesirable behavior (p. 346). When Nothing Else Works Transfer Neutralize Terminate 'Current Issues: ' Automated Performance Management: Automation can do more than just improve efficiency and save managers time – it also can increase the accuracy of the appraisals, making them seem more equitable to employees. Can be useful for communicating performance standards to employees (p. 347). Monitoring through Technology: Hand scanners, GPS, RFID, software scanning emails and Internet activities, etc. Although lowering privacy expectations and monitoring only business-related activities will help protect the employer from a legal standpoint, employees may still resent constant monitoring. (p. 348). '''Biometric Technologies